September 27, 2024 13:00 GMT
US: White House Faces Difficult Decision Over Potential Port Strike
US
USGlobalHomepagemarkets-real-timePolitical RiskPolitical Risk BulletBulletMarketsFixed Income BulletsForeign Exchange BulletsRegionNorth America
CNN reports that a looming port strike, “could become the most disruptive strike to the US economy in decades,” with workers at East Coast and Gulf of Mexico ports set to down tools on Tuesday.
- CNN reports: “If those union members walk out, as is widely expected, the strike will shut down three dozen locations at 14 port authorities... a strike could mean shortages of consumer and industrial goods, possibly driving up prices again... In addition, the halt of supplies of parts needed by US factories could disrupt those plants’ operations and even lead to temporary layoffs.”
- Jonathan Gold, at the National Retail Federation trade group, said: “In 2002, when we had an 11-day lockout on the West Coast because of labor negotiations, that cost [the economy] a billion dollars a day and took six months to recover... Trade is higher now than in 2002 so it could take even longer.”
- In 2002, the Bush Administration invoked the Taft-Hartley Act to keep ports open during negotiations. President Biden has rejected that option, but he signed a bill to block a rail strike in 2022 that, in part, led to the Teamsters declining to endorse Harris this month. The fallout from that action will likely inform the White House's decision-making, considering the importance of blue-collar voters in key swing states.
- Labor Secretary Marty Walsh said this week: “My advice is to stay out of it. You don’t have to get involved until both sides ask.”
242 words